Property Did Not Appraise Per Short Sale Approval Letter

When a buyer is obtaining financing for a mortgage their lender will require an appraisal is to be completed. When you receive a short sale approval it is for a particular purchase price. At times a short sale may be approved at more than Fair Market Value. If an appraisal is completed and the property did not appraise at or below the approved purchase price the loan will not be able to close unless something changes. The buyer will either need to bring cash to closing if allowed and cover the difference in purchase price or a value dispute will need to take place.

Value Dispute

In order to complete a value dispute in closing in this scenario one will need to submit an updated offer per the appraised value and an updated Est. HUD. It’s important to know that when completing a value dispute the investor may order another appraisal of their own to be completed. It is also possible that the investor does not budge on their value, but in the majority of legitimate circumstances the investor will review the buyers lender appraisal and issue an updated matching approval letter.

For assistance in short sale processing fill out the form below.

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